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Vehicle-to-grid (V2G) is gaining interests as means to provide reliability for power to the grid with the ability to supply power from energy storage in the vehicle. This paper presents simulation results of V2G operations in a microgrid for evaluation of reliability of the grid. It also proposes a charging and discharging control method based on the current load and battery status to relieve power load during peak hours and smooth out the load profile. Simulations are performed under both normal and “islanded” operation, i.e., disconnected from the utility grid. The results are significant in that V2G operations contribute to energy reliability on the site during emergency and cost savings in electricity bills and fuels for generators by reducing peak load.